6. CONVERTIBLE NOTES PAYABLE - RELATED PARTIES AND FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Jun. 30, 2016

Debt Disclosure [Abstract]

Short Term Convertible Notes - related parties

As of June 30, 2016, the following summarizes amounts owed under short-term convertible notes –related parties:

	Amount
Evey Note	$	80,616
Noble Note		600,000
	$	680,616

Assets and liabilities measured at fair value on a recurring and non-recurring basis

Assets and liabilities measured at fair value on a recurring and non-recurring basis consisted of the following at June 30, 2016:

			Fair value Measurements at June 30, 2016
	Carrying Value at June 30, 2016		(Level 1)		(Level 2)		(Level 3)
Embedded Conversion Option Liability	$	221,670	$	–	$	–	$	221,670

Summary of activity of Level 3 liabilities

The following is a summary of activity of Level 3 liabilities for the six month period ended June 30, 2016:

Balance December 31, 2015	$	87,992
Change in Fair Value		133,678
Balance June 30, 2016	$	221,670

Assumptions used for fair value calculations

Assumptions
Expected remaining term	0.50
Expected volatility	118.24%
Risk free rate	0.16%
Dividend yield	0.00%